By Nikki De Guzman:
Investments flowing into provincial cities and key resort markets have significantly grown since the start of the year due to declining investment opportunities in Bangkok, according to Aliwassa Pathnadabutr, Managing Director at CB Richard Ellis (CBRE) Thailand.
“As many have already heavily invested in Bangkok and options are becoming exhausted, it is only reasonable to look to other markets.”
However, some buyers don’t want to invest in a resort home because fees for common areas are the same with hotel rates and only allow owners to stay in the property for 30 days each year.
As a result, holiday-homes which provide buyers with rental yield and complimentary stay are becoming quite popular, especially resort homes managed by well-known hotel chains.
“This type of investment product meets the market needs for people who want to own a resort home as well as generate long-term yield and capital appreciation,” she noted.
“Although maintenance costs are comparatively higher, owners will enjoy freedom from hassles and enhanced capital appreciation, as well as a high level of service and extensive facilities.”
Notable hotel-branded residences on the market include Banyan Tree Residences and Amari Residences Phuket.
Developers are also offering guaranteed rental returns which typically range between five and six percent. However, most firms only offer this for the first three years. After that, they will switch to a rental-pool system wherein proceeds from all units are added together and divided proportionately among individual owners.
Although Hua Hin is considered one of Thailand’s most prominent resort markets, the demand in the district has been for own-use prompting investors to try other alternatives like Phuket which receives record-high tourist arrivals.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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